You can never be careful enough when searching for the right lender for your motorcycle loan. There are many lenders that abuse applicants charging high interest rates or concealing fees and costs within the fine print of the motorcycle loan contract. If you can't get experienced aid from a friend or family member, stick to the following advice and you'll do fine.
Dealers Shouldn't Lend
Beware of salesmen who come with extraordinary offers for financing the motorcycle of your dreams, they will state that there are many benefits obtained by financing with the same company with which you purchase the vehicle but truth is that you won't get a better deal and if something happens and you need to make a claim you'll learn that it was not the same company after all.
The interest rate charged by financing with a dealership is considerably higher than the interest rate charged by traditional lenders and a lot higher than other alternative lenders not so widely available that have special offers for motorcycle loans. Besides, with dealerships, the terms of the loan contract always hide extra fees that are not included in advertisements like insurance fees, administrative fees, closing costs, etc.
Low Rates Only for Short Terms
You need also to be careful with certain loan offers that provide a low interest rate but only for a small period. If after the promotional period has ended the interest rate rises and you can't afford the monthly payments you'd have been better off with a regular loan with a moderate interest rate fixed for the entire loan's life.
Moreover, these loans usually require the installments to be charged to a credit card. Thus, the installments may accumulate in your credit card generating not only interests but also penalty fees and other costs and sometimes, under certain circumstances, blocking your ability to use your credit card for making other purchases.
Think Ahead
The first thing you need to decide is how much money are you willing to spend on your motorcycle. Moreover, you shouldn't start shopping for a motorcycle till you are completely sure that you'll be approved for that amount. Otherwise you may waste your time selecting an expensive motorcycle worth more than you will be able to afford. You won't only be disappointed, but you might as well lose money in the process.
There are many online lenders dealing with motorcycle loans that will be able to offer you loan quotes so you can compare rates and loan amounts with the different motorcycle prices and select the loan that best suits your needs. Only after securing your loan should you start shopping for a motorcycle and try to get the lowest price on your bike as you got on your motorcycle loan.
Mary Wise, a professional consultant at http://www.badcreditloanservices.com with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. In her website you will find more useful tips and interesting articles on this subject and other financial related topics.
[tags]motorcycle loan, financing the purchase of a motorcycle, online lenders, avoid overpaying[/tags]
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